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- All Hail Gamestop and The MOASS (mother Of All Short Squeezes)...The Game Never Stops In The Degenerate Economy
All Hail Gamestop and The MOASS (mother Of All Short Squeezes)...The Game Never Stops In The Degenerate Economy
Also - Trust and Scarcity Versus Trust And Abundance
Howard Lindzon
May 14, 2024
Since I coined our current ‘degenerate economy’ nothing should surprise me about the markets and degeneracy.
But, surprised I am again.
Yesterday, Gamestop, AMC, Beyond Meat, Luckin Coffee, FlokeCoin and PepeCoin trended all day on Stocktwits. As if every College encampment knucklehead opened a Robinhood account at once.
This morning, Gamestop looks set to open up ANOTHER 100 percent in what my friend ‘Chess’ described yesterday (before this further pop) a MOASS (mother of all short squeezes)
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There have been signs of a big move if you were looking closely at the data. Tom Bruni writes the ‘Daily Rip’ for Stocktwits so he watches the streams and scans the data on our site all day had this to say:
Roaring Kitty Pours Fuel On Already Hot GameStop Fire
While Roaring Kitty’s first tweet in about three years has put GameStop back on the mainstream media’s radars, the retail trading community has been all over this “meme stock” since late April.
On April 25th, many traders on our platform began flagging “unusual call buying” in the stock as its prices rebounded, causing Stocktwits community sentiment to push back into “extremely bullish” territory while message volume surged into the “extremely high” range. Since then, both metrics have remained elevated, showing continued interest in the stock from the retail community.
The average message volume on the Stocktwits $GME stream over the last three weeks has quadrupled the average seen throughout 2023 and the first quarter of 2024. Today's message volume is well on track to surpass the total seen on our platform during the first four months of 2024. It’s the number one trending stock on Stocktwits today, with its symbol page generating several million views as of 12:15 PM ET.
As expected, the surge has caused an uptick in activity around other potential “meme stocks,” including AMC Entertainment, BlackBerry, Reddit, Tupperware Brands, Beyond Meat, Rent The Runway, Novavax, Trump Media & Technology, Lemonade, and other beaten-down stocks sporting high short interest. The brokerages are also in focus, as traders and investors discuss slowness and other operational issues at eTrade and other traditional brokers, while Robinhood’s platform has reportedly performed well during the volatility.
I asked our Stocktwits data team to share some $GME stream metrics from the day. Here they are:
Unique Users who viewed $GME symbol page yesterday was up by 1,882% compared to the previous day and the highest it has been since March 10, 2021
Total number of symbol page views for the $GME was up 4,152% from the previous day
The GME symbol page had a 2,398% increase in messages from the day before and there was an 820% increase in unique messengers posting to the $GME stream alone.
So, what caused the flare up in ‘degeneracy’?
Everybody knows (if you watch CNBC) and nobody knows (if you ask me). Of course there are always a handful of people that know. The stock was halted 9 times yesterday for volatility.
The best take on all the hilarity, degeneracy and stupidity is from Matt Levine of Bloomberg.
It all began when Roaring Kitty (Keith Gill) - who had not posted to Reddit or Twitter or YouTube since June, 2021 posted this:
When it ends nobody knows (unless you watch CNBC where everyone knows).
Matt shared 15 exam questions that Wharton should ask in a new MBA class called ‘Meme Financial Markets’. My two favorites:
One thing stands out to me re the beginning of this fresh degeneracy flare up…
You can be trusted AND scarce in an always on and networked world and still move markets.
Well done Keith Gill.
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